KARNATAKA INTRODUCES BILL TO PROTECT ITS GIG WORKERS

EMPLOYMENT LAW UPDATE

15th July, 2024

Issue No. 11/24-25

KARNATAKA INTRODUCES BILL TO PROTECT ITS GIG WORKERS 

The Government of Karnataka on 29th June, 2024 introduced the draft Karnataka Platform based Gig Workers (Social Security and Welfare) Bill, 2024 (“Bill”). The Bill inter alia places an obligation on the Aggregators for the social security and occupational health & safety of Gig Workers, it creates transparency and provides for registration of such workers in Karnataka.

APPLICABILITY OF THE BILL

The Bill applies to the following:

Aggregator:  A digital intermediary that connects a buyer and seller of any goods or service, and shall include an entity which coordinates with one or more aggregators to provide services. (“Aggregator”)

Gig Worker: A person who performs work or participates in such work arrangement that results in a specified payment given to such Gig Worker on the t&c laid down in their contract. (“Gig Worker”)

Platform: Any arrangement for providing a service through electronic means which is requested for by a recipient of such service. (“Platform”)

The service shall involve the work performed by the Gig Worker at a particular location for a payment through automated monitoring and decision-making systems.

WHAT THE BILL PROPOSES

  1. Registration: Aggregators to register with the Board constituted in accordance with the Bill, within 60 days of the commencement of the Act. Further, the Aggregators must also provide the Board with a database of all the Gig Workers onboarded or registered with them within 60 days.

 All platform-based Gig Workers onboarded or registered with the platform shall be electronically registered by the board within 60 days. The Aggregators will accordingly inform the Board of any increase or decrease in their number of Gig Workers.

  1. Transparency of automated monitoring/ Decision making systems:
  •  All Aggregators must provide complete transparency while informing the Gig Workers about the parameters as to allocation, distribution of work.
  • The rating systems
  • Categorization of Gig Workers on the basis of the work, log in time etc.
  • The personal data of the Gig Worker processed by the Aggregators
  1. Termination by Aggregator: The contractual agreement between the Aggregator and the Gig Worker shall provide for an exhaustive list of grounds for termination. The Aggregator shall not terminate a Gig Worker outside of such grounds and without providing 14 days’ notice. 
  1. Welfare Fund: The State Government is to provide for a fund to be known as the “The Karnataka Gig Worker’s Social Security and Welfare Fund” for the benefit of registered Gig Workers.
  1. Grievance Redressal Mechanism: All aggregators who have more than 50 Gig Workers registered with them must constitute an Internal Dispute Resolution Committee to protect Gig Workers rights. Gig Workers can raise grievances against the Aggregator regarding under the 2nd Schedule (failure to provide contract, failure to notify change of terms, failure to communicate information sought etc.)

FEEDBACK RECEIVED

Various tech bodies such as the Confederation of Indian Industry (CII), the National Association of Software and Service Companies (NASSCOM) and the Internet and Mobile Association of India (IAMAI) (who are comprised of businesses such as Swiggy, Zomato, Amazon etc.) have given their submissions about the Bill to the Government stating serious concerns.

They stated displeasure over the hinderances caused by the Bill to ease of doing business due to the increase in the regulatory compliance. Further, they have requested the Government to eradicate the wide inspection powers over the businesses. 

While the submission made is yet to receive a response, the Gig Workers have shown much appreciation for the security of their jobs and long-awaited social security benefits.

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